Air Force Logistics:

Efforts To Increase Obligations Caused Questionable Practices

NSIAD-86-165BR: Published: Aug 12, 1986. Publicly Released: Sep 3, 1986.

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In response to a congressional request, GAO reviewed the Air Force Logistics Command's (AFLC) accelerated obligations of 1984 and 1985 procurement funds and its progress in obligating 1986 funds.

GAO found that AFLC: (1) had an estimated $4.7 billion in unobligated funds for program years 1984 and 1985, as of December 19, 1985; and (2) obligated $1.1 billion of the procurement funds in the last 11 days of 1985, compared to its obligation of $118 million during the first 19 days of the month. AFLC accelerated 1984 and 1985 obligations by: (1) switching the designated program year from 1986 to 1984 or 1985 for the obligated funds; and (2) obligating 100 percent rather than 50 percent of the estimated value of unpriced contracts through a special delegation of authority. By increasing obligations, AFLC created administrative burdens and produced questionable procurement actions. GAO also found that the use of prior years' funds to procure 1986 requirements could have caused program year 1986 obligation rates to lag behind rates for previous years. However, AFLC obligated funds in the first 6 months of 1986 at the same rate as it obligated funds in the previous 3 years.

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